Scouting Australia Podcast
Why Buying Cheap Sh*t Units Will Never Retire You
Feb 26, 2024
Explore the risks of buying low-quality properties, with a focus on cheap units under $200,000. Learn about the differences between house and unit investments, caution against deceptive practices, and receive strategic advice on property locality and growth. Reflect on the importance of seeking advice from successful individuals and analyzing specific investment risks for informed decision-making.
32:05
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Quick takeaways
- Avoid buying cheap units under $200,000 as they offer limited growth potential and high expenses.
- Houses provide more control and profit potential compared to oversupplied unit markets.
Deep dives
Reasons Why Cheap Units Are Not Good Investments
Cheap units, typically priced under $200,000, are highlighted as poor investments due to various reasons. These units are often located in undesirable areas without strong growth potential. Despite claims of high yields, the actual net cash flow is minimal after deducting expenses like council rates, management costs, insurance, and strata fees. The lack of control over unit properties restricts investors from making significant improvements or leveraging multiple income streams.
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